1.0 INTRODUCTION:From humble beginnings, Tesco has grown to become the UK's largest supermarket chain. Over ten years ago, Tesco set its sights on becoming the Toyota of the grocery business. Since then the company has become renowned for its best practices in supply chain management (SCM), which included lean management and the use of RFID technology. The company has got an advantage over its competitors by incorporating innovation in its supply chain like point of the sale data, continued replenishment triggered by customer demand, primary distribution, cross dock distribution centre and use of single vehicle to serve several stores.

2.0. BackgroundTesco was founded in 1910 by Jack Cohen, who invested his serviceman's gratuity of £30 in a grocery stall. The first private label product introduced by Cohen was Tesco Tea. The name Tesco was a combination of the initials of the tea supplier - TE Stock well and the first two letters of Cohen's name. Tesco opened its first store in 1929. Cohen was influenced by the supermarket culture in America and tried to introduce the concept in the UK. The company's driving force was the idea: 'Pile it high and sell it cheap.' In 1947, Tesco went public and a year later, Tesco self-service stores were started. In 1956, the first Tesco self-service supermarket was opened. In the 1960s, Tesco went on an expansion spree and acquired several store chains. The Retail Price Maintenance (RPM) Act8 in Britain prohibited large retailers from pricing goods below a price agreed upon by the suppliers. To overcome this obstacle to price reduction, Tesco introduced trading stamps which were given to customers when they purchased products; they could be traded for cash or other gifts. RPM was abolished in 1964, and from then on, Tesco was able to offer competitively priced products to its customers. The first Tesco superstore, with an area of 90,000 square feet, was opened in 1967. By the 1970s, Tesco's 'Pile it high, sell it cheap' philosophy no longer appealed to shoppers. As people got richer, they started demanding expensive and luxury items. The poor performance of Tesco even led to the saying 'doing a Tesco,' which meant snatching defeat from victory. Tesco's image took a further beating when Imperial Tobacco Company which had considered acquiring Tesco as a part of its diversification strategy, did not go ahead with the deal as it felt that Tesco might damage its corporate image. To arrest the downslide in its fortunes, Tesco's management went in for an overhaul of its stores during the decade. Several stores were closed down to concentrate on the superstores. The smaller stores that still remained were refurbished to make them more customer-friendly. Tesco diversified into operating petrol pumps in 1974. In 1975, Tesco offered price discounts through a scheme called 'Checkout at Tesco.' By 1979, the company's turnover had reached £1 billion. In 1985, lan MacLaurin become Tesco's first CEO from outside the Cohen family. MacLaurin streamlined Tesco's operations, closing most of the smaller stores and opening large 30,000 square foot stores in the suburbs. Tesco also introduces a centralized distribution system, added fresh food and its own label for food products. These were successful moves. In the 1990s, the UK supermarket industry faced of 16.7 per cent, behind Sainsbury's at 19 per cent. The other major competitors were Asda and Safeway. Several warehouse stores like Costco and discount stores like Aldi, Lidl and Netto also entered the UK. In 1997, Tesco's marketing director, Terry Leahy, become the new CEO. He had introduced new pricing policy of lowering prices to match those of Asda, which resulted in Tesco's prices begin 4-5 per cent lower than those at Sainsbury's and Safeway.

3.0 DEFINING ISSUES

3.1 SUPPLY CHAIN MANAGMENT
Supply chain management is a business administration strategy that aims at the improvement in efficiency of cash flow through information sharing and...

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...Int. J. Production Economics 85 (2003) 183–198
The strategic integration of agile and leansupply
R. Strattona,*, R.D.H. Warburtonb
a
School of Engineering, Nottingham Trent University, Burton St., Nottingham NG1 4BU, UK b Grifﬁn Manufacturing, Fall River, MA, USA
Abstract Leansupply is closely associated with enabling ﬂow and the elimination of wasteful variation within the supplychain. However, lean operations depend on level scheduling and the growing need to accommodate variety and demand uncertainty has resulted in the emergence of the concept of agility. This paper explores the role of inventory and capacity in accommodating such variation and identiﬁes how TRIZ separation principles and TOC tools may be combined in the integrated development of responsive and efﬁcient supplychains. A detailed apparel industry case study is used to illustrate the application of these concepts and tools. r 2003 Elsevier Science B.V. All rights reserved.
Keywords: Agile; Trade-offs; Lean; Quick response
1. Introduction Outsourcing manufacture to low cost overseas suppliers is an attractive lure in our global economy, but often undertaken without adequate regard for the market needs and the corresponding demands on the associated delivery systems. Products compete in different ways in different markets and delivery...

...Master’s degree thesis
LOG950 Logistics
Warehouse improvement with Lean 5S - A case study of
Ulstein Verft AS
Iva Gergova
Number of pages including this page: 86
Molde, 21.11.2010
1
Publication agreement
Title: Warehouse Improvement with Lean 5S - A Case Study of Ulstein Verft AS
Author(s): Iva Gergova
Subject code: LOG 950
ECTS credits: 30
Year: 2010
Supervisor: Associated Professor Bjørn Guvåg
Agreement on electronic publication of master thesis
Author(s) have copyright to the thesis, including the exclusive right to publish the document (The Copyright
Act §2).
All theses fulfilling the requirements will be registered and published in Brage HiM, with the approval of the
author(s).
Theses with a confidentiality agreement will not be published.
I/we hereby give Molde University College the right to, free of
charge, make the thesis available for electronic publication:
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Is there an agreement of confidentiality?
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(A supplementary confidentiality agreement must be filled in)
- If yes: Can the thesis be online published when the
period of confidentiality is expired?
Date: 21.11.2010
2
Contents
TABLE OF FIGURES ........................................................................................................................................................ 5
PREFACE...

...defined as a supplychain. Supplychain management focuses on managing the supplychain in an effort to improve the quality and time it requires to manufacture a product. In addition to implementing supplychain management, a helpful lean production practice called Just-in-time can be used to remove any waste present along the supplychain. The marriage of lean production and supplychain management creates leansupplychain management, which provides a much leaner and more economical supplychain for the product to flow through.
SupplyChain Management and Lean Production
Much uncertainty about what supplychain management entails is present in today’s society. Many people treat supplychain management as being synonymous with logistics, which is the management of the flow of goods from the origin to the consumers (Lambert, 2008, p. 1). However, supplychain management encompasses much more than the purchasing or management of goods to the consumer. Supplychain management (SCM), as defined by Lambert (2008), is the management of relationships...

...13
Lean and agile supplychain
Introduction
With the real-time access to the Internet and search engines like Google and
with the increased global competition, customers have more power than ever
before. They demand innovative product features, greater speed, more product
variety, dependable performance and quality at a best in class and at a competitive price. Furthermore, today’s discerning consumers expect fulfilment of
demand almost instantly. The risk attached to traditional forecast driven lengthy
supply line has become untenable for consumer products. In this chapter, we
discuss how to take up this challenge through a lean and/or agile supplychain.
As we discussed in Chapter 3 (see Figure 3.6), a distinction is often drawn
between the philosophy of leanness and agility. Like the perennial business
phrase ‘quality’ both ‘leanness’ and ‘agility’, there appears to be differing opinions as to what is meant or intended.
In their ‘pure’ form three models of supplychain can be identified being
traditional, lean and agile.
•
•
•
Traditional – Known for:
– Protection of market, aims for leadership
– Forecast driven
– Higher emphasis on customer service than cost
– Inventory held to buffer fluctuations in demand and lead times
Lean – Characteristics are:
– Integration upstream with...

...﻿1.0 Introduction
Leanmanufacturing is the systematic elimination of waste from all aspects of an organization’s operations, where waste is viewed as any use or loss of resources that does not lead directly to creating the product or service a customer wants when they want it. In many industrial processes, such non-value added activity can comprise more than 90 percent of a factory’s total activity
Leanmanufacturing orlean production are reasonably new terms that can be traced to Jim Womack, Daniel Jones and Daniel Roos’ book, The Machine that changed the world [1991]. In the book, the authors examined the manufacturing activities exemplified by the Toyota Production System. Leanmanufacturing is the systematic elimination of waste. As the name implies, lean is focused at cutting “fat” from production activities. It has also been successfully applied to administrative and engineering activities as well. Although leanmanufacturing is a relatively new term, many of the tools used in lean can be traced back to Fredrick Taylor and the Gilbreaths at the turn of the 20th century. What Lean has done is to package some well-respected industrial/manufacturing engineering practices into a system that can work in virtually any environment.
2.0 Brief History
Many people and developments...